Steady post-holiday high-grade supply eyed; Takeda, Mondelez firm

By Cristal Cody

Tupelo, Miss., July 2 – The investment-grade primary market remained quiet ahead of the early close on Thursday with steady issuance expected to resume after the Independence Day holiday.

The financial markets closed at 2 p.m. ET and will reopen on Monday.

Investment-grade issuers priced about $15 billion of bonds in the first two sessions of the week, in line with the $10 billion to $15 billion of volume expected by market participants.

Issuance was led by Takeda Pharmaceutical Co., Ltd.’s $7 billion four-part offering of senior notes (Baa2/BBB+/) that priced on Monday.

Looking ahead to deal action after the holiday, about $20 billion to $25 billion of volume is expected, according to syndicate sources.

Takeda Pharmaceutical’s $7 billion of senior notes (Baa2/BBB+/) priced in four tranches on Monday improved about 5 bps to 12 bps, a source said.

Mondelez International, Inc.’s new 0.625% notes due July 1, 2022 (Baa1/BBB/) tightened about 3 bps in the secondary market, a source said.

The company sold $1 billion of the notes on Tuesday at a spread of 48 bps over Treasuries.

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